Dolomite,
I am an insurance agent in the Nashville area. Perhaps I can give you some direction. I would suggest getting your own policy to cover the mortgage that is NOT associated with the mortgage itself. Reason...in case you ever refi again...you have a policy in place that cannot be cancelled. In other words, you control what happens with the policy rather than the mortgage company. As far as what product to buy, that will be based off what you want it to do. The problem with Dave Ramsey's prescription of "buy all term" is that does not fit the need of 100% of everyone. I'm sure he doesn't suggest that everyone buy the same mutual fund so why would it be prudent for everyone to buy just term insurance. It all depends on your need for the product.
Based on what you are telling me, I would probably go the Term route if the only reason you need the insurance is for mortgage protection. You should be able to find a term (10 yr, 20 yr, 30 yr level term) that will be close to the amount of time of the loan and this would be your cheapest route to go. If you are wanting some life insurance to be in place when you die (which may be 85), your only guarantee is to buy as much Permanent (whole life, universal life) as you can afford.
I hope this helps the insanity!
Tim